Extended Warehouse Management: Processes, Functionality, and Configuration

Transcription

1 M. Brian Carter, Joerg Lange, Frank-Peter Bauer, Christoph Persich, Tim Dalm SAP Extended Warehouse Management: Processes, Functionality, and Configuration Bonn Boston

2 Contents at a Glance 1 Introduction to SAP Extended Warehouse Management Organizational Structure The Warehouse Structure Product Master Data Other Warehouse Master Data Warehouse Stock Management Warehouse Document Types Integration from ERP to EWM Inbound Processing Outbound Processing Production Supply Internal Warehouse Movements Configuring Multistep Warehouse Movements Physical Inventory Warehouse Monitoring and Reporting Exception Handling Cross-Docking Yard Management Value-Added Services (VAS) Kitting Labor Management Data Capture and Resource Optimization Integration with Other Applications Post-Processing Framework and Form Printing Authorizations and Roles and Data Archiving Deploying Extended Warehouse Management Conclusion

3 Contents Acknowledgments Introduction to SAP Extended Warehouse Management Background and History The Evolution of SAP WMS The EWM Brand Target Audience Summary Organizational Structure Plants Storage Locations Warehouses Defining the Warehouse Numbers Integrating to DWM and EWM Specifying the Warehouse Management Methodology Delivery Split Indicators Connecting ERP to EWM Defining the Warehouse in EWM Assigning the Warehouse in EWM to the ERP Warehouse Assigning Business Partners and Supply Chain Units Summary The Warehouse Structure Storage Types General Putaway Control Stock Removal Control Goods Movement Control Replenishment

4 Contents 3.2 Storage Sections Storage Bins Creating Storage Bins Generating Storage Bins Using Storage Bin Structures Mass Change to Bins Setting Up Storage Bin Sorting Fixed Bin Assignments Creating Verification Fields Printing Labels for Storage Bins Activity Areas Doors and Staging Areas Work Centers Work Center Layout Creating Work Centers Optimizing Work Center Determination Summary Product Master Data The ERP Material Master Existing Views of the ERP Material Master WM Execution WM Packaging Integrating the ERP Material Master to EWM The EWM Product Master General Properties Units of Measure Classification Packaging Data Storage Warehouse Data Slotting Storage Type Data Summary

5 Contents 5 Other Warehouse Master Data Business Partner Data Customers Vendors Employees Plants Other Business Partner Roles Supply Chain Units (SCUs) Maintaining SCUs Assigning SCUs to the Warehouse Using SCUs in Transportation Assigning Calendars to SCUs Master Data for Transportation Prerequisite Configuration Transportation Hierarchy Transportation Lanes Transportation Zones Transportation Routes Carriers as Business Partnerss Carrier Profiles Packaging Materials Packaging Specifications Structure of the Packaging Specification Creating a Packaging Specification Activating the Packaging Specification Distributing Packaging Specifications Determination of Packaging Specifications Production Master Data Creating Production Supply Areas Mapping Production Supply Areas Assigning Bins for Production Supply Resources Resource Types Execution Priorities Resource Groups Queues

6 Contents Queue Sequences Queue Types Queue Type Sequences Standard Bin (or Start Bin ) Tracking the Current Storage Bin Maintaining Users Resource Execution Constraints (RECs) Processors Presentation Devices Summary Warehouse Stock Management Quants Definition of a Quant Adding To Existing Quants Displaying Quants Stock Visibility on Storage Bins, Resources, and Transportation Units Physical Stock and Available Stock, Incoming and Outgoing Stock Logistics Inventory Management Engine (LIME) Stock Types Owner Party Entitled to Dispose Stocks from a Single Plant in One Warehouse Stocks from Several Plants in One Warehouse Background on the Party Entitled to Dispose Link between Custodian, Party Entitled to Dispose, and Owner Batch Management Batch Management in EWM Batches in the Goods Receipt Process Batches in Goods Issue Process Documentary Batch Management Distribute Documentary Batch Management Settings to EWM

7 Contents 6.7 Serial Number Management Setting Up Serial Number Profiles Serial Numbers in Delivery Processing Provisional Serial Numbers Serial Numbers in Warehouse Tasks Serial Numbers in the Warehouse Management Monitor General Settings for Using Serial Numbers in EWM Handling Unit Management Structure of an HU Hierarchy Packaging Materials Empty HUs in EWM Printing HUs Smart Forms Available in EWM Standard for Printing HUs PPF Framework and Condition Maintenance for HU Printing Status Management Unique Identification of HUs Using Serialized Shipping Container Code (SSCC) Numbers Transportation Units Stock Identification Creation of Stock Identification Deletion of a Stock Identification Use of Stock Identification Splitting a Stock Identification Shelf-Life Expiration Date Control Master Data for SLED Control SLED Control in Goods Receipt Process SLED Control in Goods Issue Process Monitoring SLED of Warehouse Stock Catch Weight Management Activating CWM per Product Integration of CWM into the EWM Processes Integration of CWM into the EWM Delivery Process Integration of CWM to Physical Inventory Tracking Country of Origin Country of Origin without Batch Management Country of Origin with Batch Management

8 Contents 6.14 Stock Determination and Valuation Stock Determination Stock Valuation Special Stocks Sales Order Stock Project Stock Summary Warehouse Document Types Inbound Delivery Documents Outbound Delivery Documents Warehouse Tasks Product Warehouse Tasks Handling Unit Warehouse Tasks Yard Warehouse Tasks Warehouse Orders The Warehouse Order Concept Warehouse Order Creation Rules Warehouse Orders for Physical Inventory Documents Waves Physical Inventory Documents Value-Added Service Orders Stock Transfers and Posting Changes Quality Inspection Documents Summary Integration from ERP to EWM Basic System Setup Master Data Integration Delivery Integration Purchase Order and Production Order Integration Pulling Expected Goods Receipts into EWM from ERP Pushing Expected Goods Receipts from ERP to EWM Summary

9 Contents 9 Inbound Processing Goods Receipt Notification Goods Receipt Notification Based on Advanced Shipping Notice Goods Receipt Notification for Purchase Order/ Production Order Setup for Inbound Delivery Processing Truck Arrival and Yard Management Setting Up Yard Management Goods Receipt Preparation Administrative Goods Receipt Based on ASNs Administrative Goods Receipt Based on EGRs Unloading and Goods Receipt Unloading Visual Inspection and Completeness Check Posting Goods Receipt Putaway Processing Process-Oriented Storage Control for Inbound Processes Layout-Oriented Storage Control for Inbound Processes Combined Storage Control for Inbound Processing Quality Inspection in Inbound Processes Deconsolidation Value Added Services Putaway Slotting Quality Management in EWM Quality Inspection Engine Architecture Quality Inspection Engine Data Counting Summary Outbound Processing Outbound Delivery Creation Outbound Processing for Sales Orders

10 Contents Direct Outbound Delivery Process Overview of Outbound Processing in the Warehouse Route Determination Executing the Route Determination Setting Up Route Determination Details of Warehouse Process Steps Warehouse Process Type Determination Wave Management Warehouse Order Creation during Outbound Processes Storage Type Determination Stock Removal Strategies Storage Control in the Outbound Processes Picking Execution Optimization of Picking Execution with Picking List Execution with Mobile Devices Cancelling Picking Pick Denial Pick, Pack, and Pass Pick Point Handling Packing Door and Staging Area Determination Loading, Shipping, and Freight Order Management Freight Order Management Invoice Before Goods Issue Posting Goods Issue Summary Production Supply Organizational Structure for Production Supply Single EWM Warehouse Separate EWM Warehouse Non-EWM-Managed Storage Location Configuring the Organizational Structure for Production Supply Setting Up the Integration to Production Executing the Production Supply Production Staging Executing the Picks for Production

11 Contents Goods Issue and Backflushing Summary Internal Warehouse Movements Replenishment Planned and Unplanned Replenishment Configuration for Replenishment Planned Replenishment Order-Related Replenishment Crate Part Replenishment Direct Replenishment Automatic Replenishment Rearrangement Additional General Configuration for Rearrangement Master Data for Determination of Optimal Storage Bins Execution of Rearrangement Alerts for Rearrangement Ad Hoc Moves RF Creation and Execution of Ad Hoc Warehouse Tasks Posting Changes Summary Configuring Multistep Warehouse Movements Introduction Storage Control in Inbound Storage Control in Outbound Storage Control for Warehouse Internal Movements Process-Oriented Storage Control Definition of Storage Process Layout-Oriented Storage Control Summary Physical Inventory Introduction Physical Inventory Process

12 Contents 14.3 Physical Inventory Objects Physical Inventory Documents Physical Inventory Areas Difference Analyzer Physical Inventory Using External Systems Stock Comparison to ERP Posting Differences Automatically Supported Methods for Physical Inventory Ad Hoc Physical Inventory Annual Physical Inventory Low Stock Check (Storage Bin Specific) Putaway Physical Inventory Cycle Counting Storage Bin Check Integration to Resource Management Monitoring the Physical Inventory Progress Summary Warehouse Monitoring and Reporting Warehouse Management Monitor Overview of the Warehouse Monitor Personalizing the Warehouse Monitor Easy Graphics Framework Enhancing the Warehouse Cockpit Graphical Warehouse Layout Warehouse Reporting Overview of EWM BW integration EWM-Specific Reporting Content BW Objects for Reporting Extraction Process Reporting Tools Summary Exception Handling Configuring Exception Codes Technical Information about EWM Exception Codes

13 Contents Defining a New Exception Code Using Exception Codes Managing Stock Transport Order (STO) Exceptions Background and Overview of STOs General Customizing for STO Discrepancies General Customizing for STO Discrepancies Carrier Responsibility Shipper Responsibility Correction Delivery for the Shipping Warehouse to Clear Difference Managing Exceptions at Cross-Docking Confirmation Corrections Summary Cross-Docking Transportation Cross Decking (TCD) Cross-Docking Routes TCD Storage Locations Integration of TCD into EWM Stock Processing TCD for Contract Packagers Additional Remarks about TCD EWM-Triggered Opportunistic Cross-Docking Variants of Opportunistic Cross-Docking Activating Opportunistic Cross-Docking Merchandise Distribution Push Deployment and Pick From Goods Receipt Putaway Delay at Goods Receipt in EWM Integration of PD and PFGR into the EWM Storage Control Summary Yard Management Yard Management Structure Transportation Units and Vehicles Creating Transportation Units Other Functions of the Transportation Unit UI

14 Contents Creating Vehicles Other Functions of the Vehicle UI Check-In and Check-Out Yard Movements Monitoring the Yard Interfacing Yard Data to ERP Summary Value-Added Services (VAS) Configuration and Master Data for VAS Configuration for VAS Master Data for VAS VAS Order Creation VAS Integration in Warehouse Processes VAS for Outbound Process Using the VAS Work Center and VAS Execution Effort Codes and Consumption of Auxiliary Materials VAS for Inbound Processes VAS for Internal Processes Summary Kitting Kit to Order using ERP Sales Orders Kit to Order at a Work Center Using VAS Orders Kit to Order at a Work Center without VAS Orders Kit to Order During Picking Kit to Stock Kit to Stock Using an ERP Production Order Kit to Stock Initiated from VAS Orders in EWM Reverse Kitting Summary Labor Management Activating Labor Management Master Data for Labor Management

15 Contents Processors Formulas and Conditions Engineered Labor Standards Determining Engineered Labor Standards Uploading Engineered Labor Standards Direct Labor Activities Capturing Start and End Times Travel Distance and Travel Time Indirect Labor Activities Creating Indirect Activity Types Entering Indirect Activities on the GUI Entering Indirect Activities on a Mobile Device Calculating Workload for Planning Assigning the Planning Activity Area Calculating the Planned Workload Preprocessing Viewing Planned Workload in the Warehouse Monitor Operational Planning Loading Planning and Simulation Results Employee Performance Creating the Employee Performance Documents Efficiency versus Utilization Viewing Calculated Results on Mobile Devices Viewing Employee Performance in the Warehouse Monitor Summary Data Capture and Resource Optimization Overview of Data Capture Methods for Warehousing Technical Mobile Data Capture Integration Resource Management and Warehouse Optimization Users Resources Queues Resource Groups Resource Types

16 Contents 22.4 System-Guided Processing Monitoring of the Resources RF Framework Advantages of the EWM RF Framework Setup of the RF Framework Enhancing the EWM RF Transactions Personalization of the EWM RF Transaction Comparison of the Mobile Online User Interface Technologies SAP Console SAP Web SAP Console SAP ITSmobile SAP ABAP and Java Web Dynpro Third-Party Integration Windows Terminal Server and Citrix Integration Integration of the Other Technologies Pick-by-Voice Integration RFID Integration Summary Integration with Other Applications Integration with CRM Business Partners Outbound Orders and Deliveries CRM Sales Order Status Updates Returns Order Processing Integration with SNC Integration with ASNs Integration of Return ASNs Integration with SPP Demand and Forecast Data for Slotting Inbound Receipts for Vendor Purchases Inbound and Outbound Deliveries for Stock Transfers Kit to Stock Integration with Global ATP Integration with Global Trade Services (GTS) Integration with Other Applications Integration with BW

17 Contents 23.8 Master Data Integration Integration with Inventory Management Adjustments from Inbound and Outbound Deliveries Posting Changes Physical Inventory Adjustments Comparing and Synchronizing Inventory Integration with Purchasing Transfer of ASNs and Inbound Deliveries Downloading Expected Receipts for Purchase Orders Inbound Delivery Creation in EWM Integration with ERP Sales and Distribution Integrating Deliveries from ERP to EWM Processes Supported Using ERP SD Integration with PP Production Receiving Production Supply Kit to Stock Integration with Finance Goods Movements Material Valuation VAS Billing Integration with HCM Employee Data Performance Data Integration with Material Flow Systems Integration with Warehouse Subsystems Integration with Warehouse Control Units Integration with Voice Picking Systems Summary Post-Processing Framework (PPF) and Form Printing Overview of the PPF Administration of the PPF Defining Action Profiles and Actions Condition Configuration Printing in EWM Using PPF Summary

18 Contents 25 Authorizations and Roles and Data Archiving Authorizations and Roles The Authorization Concept Control of Authorizations for EWM Standard Roles Delivered with EWM Data Archiving Summary Deploying Extended Warehouse Management Deployment Options for EWM Deploying EWM on SCM Deploying EWM on ERP The Standard Connection to ERP Connecting EWM to Older Releases of ERP Connecting EWM to a Non-SAP ERP Deploying EWM in a Mixed Warehousing Environment EWM Sizing and Deciding How Many Servers to Deploy Deciding Where to Position Your EWM Servers High Availability for EWM Automatic Configuration BC Sets for EWM Configuration Executing and Troubleshooting BC Sets Data Loads Loading Business Partners Loading Products Loading Storage Bins Loading Storage Bin Sorting Loading Packaging Specifications Loading Stock Loading Labor Management (LM) Data Summary

19 Contents 27 Conclusion What We Covered Key Learnings The Future of EWM Next Steps Abbreviations The Authors Index

20 The SAP Extended Warehouse Management (EWM) application provides functionality for managing complex scenarios for high-volume distribution operations. 1 Introduction to SAP Extended Warehouse Management This text provides you with the information you need to understand the SAP EWM solution, including the functions that it supports, how to set up those functions, and how to get started with a project that will utilize those functions to support your warehouse operations. In this chapter, we will start by providing some background and history on SAP s warehousing applications, tell you how SAP EWM evolved, inform you about the variations of the EWM brand, and tell you who this text is for and how to use it. We hope that the text serves to inform and educate you and help you make the right decisions regarding your EWM implementation. 1.1 Background and History In the past few decades, warehouses have evolved from simple receiving, storage, and shipping facilities to full-scale, high-volume, flow-through distribution operations. Global competition has driven businesses to hold less inventory and to get their products to market both faster and with more precise timing than in the past. Competition has also driven both local and global corporations to become leaner and more efficient and to react faster to both changes in the marketplace and in the internal business environment. Constantly shifting business priorities, increasing seasonality of products, faster business cycles, and more frequent mergers and acquisitions are just some of the market conditions that lead to intense pressure on warehouses to increase efficiency while still providing flexibility to the business to allow it to react to changing demands. 27

21 1 Introduction to SAP Extended Warehouse Management At the same time, disproportionate increases in costs of labor, raw materials, and real estate threaten to drive warehousing costs higher, impeding companies ability to make a profit. For some companies, this pressure to perform effective logistics operations is too great or comes at too great a cost, and they are increasingly turning to outsourced solutions, such as third-party logistics providers, to cost-effectively handle the volumes of products and ever-changing business requirements. However, this just shifts the burden to a whole new group of people, upon whom the pressures are even more intensified by the need to not only maintain flexibility for a single organization, but to maintain flexibility across multiple organizations. To top it off, those organizations often have very different products, processes, business requirements, and management styles. This increase in pressure on warehouses to do more with less has led to a corresponding increase in the complexity of business processes. In turn, this increasing complexity of business processes then requires both an increase in talent of warehouse managers and an increase in capabilities of the systems that help those managers run their businesses. The evolution of the warehouse management system (WMS) software industry has run parallel to the changes in the warehousing and distribution marketplace, with ever-increasing business process capabilities supported by more and more capable WMSs delivered by companies who specialize in standardized software. However, there are still companies who prefer to run their own bespoke systems filled with functionality specific to their own businesses and supported by armies of programmers. But more and more, those companies are realizing the benefits in the total cost of ownership (TCO) of using standard software solutions that also meet their business needs. And those companies are turning to software vendors like SAP for their software solutions. Since 1972, SAP has specialized in providing standard software solutions for common business processes. Since the first release of R/1 a year after the company s founding, SAP has constantly evolved their products to expand into new markets or to match the changing business needs of their customer base. Through the R/2 days in the late 1970s and 1980s, SAP delivered software to not only meet the needs of back-office functions like finance and purchasing, but began to move more and more to the front lines of managing the product manufacturing, sales, and distribution. In the early 1990s, SAP delivered its flagship client-server product, SAP R/3, and it has continued to enhance that application throughout its lifecycle. The SAP R/3 product evolved in the early 2000s into what is today known 28

22 The Evolution of SAP WMS 1.2 as SAP ERP. In the meantime, starting in the late 1990s, SAP began to deliver, in addition to its core ERP functions, specialized functions for Customer Relationship Management (CRM), Supply Chain Management (SCM), and Business Warehousing (BW). The collective release of these products was dubbed the New Dimension products, representing a new dimension in enterprise software. In the 2000s, SAP continued to refine and expand those products, delivering release after release of new and revised functionality. As part of this wave of new and expanded functionality, SAP delivered the first release of SAP EWM in At the time, EWM was part of the SAP SCM solution and could not be delivered separately. Since then, SAP has delivered the capability to deploy EWM as an addon to SAP ERP, allowing EWM to break free from its SCM roots and enjoy its own product naming and branding SAP EWM. In this text, we will discuss SAP EWM, including its history, configuration, implementation, utilization for solving common business problems, and extension to solve implementations specific business problem. We will discuss the functionality of the latest release, SAP EWM 7.0. Unless otherwise specified, all screenshots and product descriptions are specific to the SAP EWM 7.0 solution. 1.2 The Evolution of SAP WMS Even as early as release R/2, SAP contained functionality for locating products in the warehouse. At the time, it was a basic locator system, but it provided the baseline for SAP s foray into the warehouse management (WM) world. In 1993, SAP released R/3 Release 2.0 and with it, its first warehousing application on the client server framework. Back then, SAP WM only covered the basics of a warehousing application, namely to track product in multiple bins in the warehouse and assign pallet identification labels, or pallet IDs, to the product in the bin. In SAP parlance, these pallet IDs were known as storage units. Since its initial releases, SAP has extended its WM application with additional functionality including: E E integration to SAP R/3 Production Planning, Quality Management, and Logistics Information Systems (in SAP R/3 Release 3.0 and 3.1) wave picking, warehouse monitoring, and integration to SAP R/3 Human Resources (HR) (in SAP R/3 Release 4.0) 29

23 1 Introduction to SAP Extended Warehouse Management decentralized WM and radio frequency support (in SAP R/3 Release 4.5) support for handling unit (HU) management (an Inventory Management level method for tracking pallet IDs across plants, storage locations, and warehouses) and packing station capabilities (in SAP R/3 Release 4.6) task and resource management for handling multistep movements that could be performed by multiple resources (in SAP R/3 Enterprise (4.7) Extension Set 1.1) support for yard management, cross-docking, and value-added services (VAS) (in SAP R/3 Enterprise (4.7) Extension Set 2.0) In parallel, businesses around the world started to use the SAP WM system to manage more and more complex warehouses and distribution centers. As the product grew, the customer base grew with it, and today, SAP WM is deployed by more than 5,000 SAP customers worldwide. In 2005, SAP released version 5.0 of its SCM software, and with it, released the first version of its SAP SCM EWM software. This version of the WM software was completely separate architecturally from the SAP WM from ERP. Although they shared some common themes in terms of capabilities, the SAP EWM was designed from the ground up with the needs of complex, highly automated, high-volume distribution centers in mind. The design of the solution was based on a coordinated effort between the industry, solution, and development experts at SAP and a set of development partners who brought extensive business expertise on high-volume planning, order fulfillment, and distribution operations. SAP worked together with its development partners in a strategic development project that lasted over three years to design and deploy a standard software solution that would compete in the marketplace with the most advanced WMS. SAP and the development partners engaged in this effort to build a complete set of software solutions to manage their complex, high-volume service parts operations not just a WMS, but also a planning and fulfillment system that would coordinate together perfectly to manage entire operations. Today, those applications, including SAP CRM, SAP ERP, and SAP SCM, including the Service Parts Planning and EWM applications, are marketed together in the SAP Service and Asset Management industry solution. The components of the industry solution used for service parts are often collectively referred to as the SAP solution for service parts management. 30

24 The Evolution of SAP WMS 1.2 Even though the development partners of SAP intended to use the solution to manage distribution centers full of service parts, and the solution was delivered along with other applications specific to service parts, the SAP EWM solution was built with the intent that it could be used across multiple industries. For instance, the first release of EWM (as part of SAP SCM 5.0) delivered functionality to support the needs of complex, high-volume distribution centers, including: slotting deconsolidation cross-docking yard management complex internal routing kitting VAS In EWM 2007 (also called EWM 5.1), SAP added support for: Labor Management (LM) Radio Frequency Identification (RFID) enablement for internal warehouse processes kit-to-stock additional goods receipt functions catch weight support capabilities for direct connection to automated material handling equipment, or Material Flow Systems (MFS) enhancements for batch management enhancements for serial number handling manual creation of outbound deliveries In more recent years, SAP has added additional functionality to SAP EWM to support the needs of consumer products and retail companies, and today, the solution is marketed and sold to all industries that require complex WMSs. Specifically, in EWM 7.0, SAP added support for: 31

25 1 Introduction to SAP Extended Warehouse Management graphical warehouse layouts additional resource management features, including: task interleaving execution constraints support for semi-system guided work additional cross-docking support, including: opportunistic cross-docking retail merchandise distribution production cross-docking support for production supply from an EWM-managed warehouse Following Release EWM 7.0, SAP will convert the SCM platform, including EWM, to the enhancement package model for deploying new functionality. This model has already been employed on ERP following the release of SAP ERP 2005 (or what is now known as SAP ERP 6.0), and now the same model will be utilized for SCM, CRM, and the other major SAP business applications. The enhancement package model allows SAP to deliver enhanced functionality through regular updates between major releases. The updates can be activated as needed via business functions. The business functions contain a set of similar or related functions, allowing you to decide which business functions to activate without requiring you to activate all of the functionality delivered with the enhancement package at once. This can save you considerable time in testing the application of the enhancement package, because you only have to test the functions that are affected by the activated business functions. In turn, the business functions allow you to deploy the functionality to your end users faster. And the enhancement package model allows SAP to bring new functionality to market faster, making it a win-win for everyone. The first enhancement package for SAP EWM is scheduled to be released in mid The functions will be delivered in separate business functions, which will allow you to install the enhancement pack and then activate one or all (or none) of the business functions and test your solution accordingly. In the coming years, SAP will continue to add additional features to the EWM 7.0 release through enhancement packages. 32

26 The EWM Brand The EWM Brand When SAP released its SAP R/3 Enterprise Extension Set 2.0 functionality to support yard management, cross-docking, and VAS, it assigned the informal name Extended Warehouse Management to this collection of new functions. Though you wouldn t find this name anywhere in the system, the features were collectively referred to using this moniker so that SAP employees and partners could effectively discuss the new features with their customers. One common point of confusion is that the EWM brand, as it applies to ERP WM, does not include the function Task and Resource Management (TRM). TRM was released with SAP R/3 Enterprise Extension Set 1.1, whereas the EWM naming only applies as of R/3 Enterprise Extension Set 2.0. What is also sometimes confusing is that the EWM naming does not even apply to all of the features that were delivered for SAP ERP WM with Extension Set 2.0. For example, dynamic cycle counting, the functionality that lets the user walk up to a storage bin in the warehouse with a Radio Frequency device and initiate an ad hoc cycle count, was introduced with Extension Set 2.0, but it is not included in the EWM features. The only three functions that are included in the EWM brand as it applies to SAP ERP WM include cross-docking, yard management, and VAS. When SAP delivered SAP SCM 5.0 in 2005, it also delivered EWM. As mentioned previously, this version of EWM was related to SAP ERP EWM in name only. The SAP SCM EWM was delivered on the SCM platform, completely separate from SAP ERP and without any direct link to SAP ERP WM or SAP ERP EWM. It uses different tables, different structures, and different program from the ERP application. In some ways, it uses the same concepts and paradigms, but in other ways, it is significantly different and even performs the same functions in uniquely different ways. To hopefully make it more clear, Figure 1.1 provides a visual diagram of the functions to which the EWM is used to refer. However, in this text, we will focus on the right-hand side of the diagram the SCM EWM. In 2007, SAP decoupled EWM from the SCM Basis layer so that the company could prepare to deploy the solution as an add-on to ERP. An add-on is a product that can be deployed on top of another application platform without being coupled to or dependent on the underlying software technology architecture. Allowing the EWM to be deployed as an add-on would mean that businesses of all sizes that did not necessarily have the skills, manpower, or funding to deploy an SCM 33

27 1 Introduction to SAP Extended Warehouse Management server could deploy EWM on their ERP server and enjoy the benefits of the latest warehousing applications. As briefly mentioned earlier, in 2005, SAP announced that it would migrate its ERP application to the Enhancement Pack model and that the ERP 2005 release (which it later renamed ERP 6.0) would be the go to release for the next several years. This Enhancement Pack model allows SAP to deliver new functions in a quicker way and allows customers to implement those new functions more quickly and easily by giving customers the freedom to choose which business functions to activate after implementing the enhancement pack. EWM When Does it Apply? SAP ERP 4.6C Core WM Picking Putaway Replenishment Wave Picking 2-Step Picking Etc. SAP ERP Task & Resource Management SAP ERP Dynamic Cycle Count ERP EWM - Value Added Services - Cross-Docking - Yard Management Note: This is a simplified model and is not intended to be inclusive of all functionality of the applications or releases. EWM SAP SCM 5.0 Extended Warehouse Management (EWM) - Picking - Putaway - Deconsolidation - Replenishment - Wave Picking - 2-Step Picking - Slotting - Value Added Services - Cross-Docking - Yard Management SAP EWM Labor Management SAP EWM Production Supply - Opp. Cross-Docking - Merchandise Dist. Figure 1.1 The EWM name can be applied to functionality of ERP and SCM. In this text, we will focus on the functionality on the right side. When SAP delivered its second Enhancement Pack for ERP, SAP ERP 2005 Enhancement Pack 2, in 2007, it made good on its promise to allow EWM to be deployed as an add-on to ERP. Now customers have the choice of whether to deploy EWM on the SCM platform or on their existing ERP platform, giving them the freedom to provide all of the functionality on the right-hand side in Figure 1.1 on the ERP platform. In Chapter 26, Deploying EWM, we will further discuss the option of deploying EWM as an add-on to ERP. 34

28 Target Audience Target Audience In this text, we intend to provide knowledge, information, and reference material for project leads, implementation consultants, project team members, business analysts, and business users who are responsible for implementing, maintaining, or problem solving for the SAP EWM solution. Key decision makers who need to understand the application well enough to decide how and where to deploy EWM may also find the text useful in their decision-making processes. The text will cover an overview of the capabilities of the EWM solution, the configuration elements available in the standard solution, the methods used to solve common business process problems, plus the possibilities to extend the solution to meet more complex or unique business requirements. The text will provide both detailed system configuration and setup instructions, and descriptions of and solutions to common business concerns for complex high-volume distribution operations. Following the introduction, the second section of the text will cover the basic warehouse setup, including the warehouse structure, warehouse master data, stock management, and warehouse document types. This section will provide a baseline for understanding the remaining sections and will also provide a reference for users who are getting started with an EWM implementation. The third section will cover configuration and setup for basic warehousing processes, including inbound processing, outbound processing, internal movements (including replenishment and rearrangement), and physical inventory. The fourth section will cover special cross-topics such as cross-docking, yard management, VAS, and data capture (including mobile data entry using radio frequency enabled devices and RFID). The final section and the appendix will provide conclusions, a list of common abbreviations, and the index. If you are not familiar with the SAP warehousing terms already, you may want to check the index or the online glossary (available in the SAP Online Help at before you continue, or you may find it helpful to refer to them periodically as you read through the chapters. Whether you read the text cover to cover or place it on your desk to use as a handy reference during your implementation (or both), we think that you will enjoy the text and find it both interesting and useful. 35

29 1 Introduction to SAP Extended Warehouse Management 1.5 Summary In this chapter, we introduced SAP EWM and described the contents of this text. Hopefully, this gives you an idea of what this text is about and how to use it. In the next chapters, we will describe the organizational structure and master data for EWM. 36

30 Index A Access sequence, 397 for staging area and door determination, 460 Action definition, 784, 785 Action profile, 357, 783 Activity, 214, 362 Activity area, 105, 214, 378, 436 Assign bins, 106 assigning to physical inventory area, 540 create, 105 in queue determination, 723 join, 105, 455 Activity types, 701 Actual workload, 688 Addition to existing stock, 67, 168, 383, 390 Certificate number, 72 Goods receipt date, 71 Level, 75 Shelf-life expiration date, 72 Add-on for EWM, 799 Ad hoc movements, 483, 511 via RF, 512 Ad Hoc PI Physical Inventory, 545 Adjustment profile, 153, 158 Adobe Forms, 279 Advanced Planning and Optimization (APO), 126, 414 Demand data, 164 Advance Shipment Notice (ASNs), 339, 343, 345, 635, 758, 760, 771 Alert Monitor, 510 Alert priority, 509 Alerts for capacity utilization, 509 triggering for stock situation, 510 triggering in RF, 451 Allowed package volume, 120 Allowed package weight, 120 Allowed volume tolerance, 120 Alternate unit, 119, 139, 140 Alternative storage bin type sequence, 168, 504 Annual inventory, 531 Annual PI Physical Inventory, 545 Application Link Enablement, 50 Application platform, 781 Archive objects, 795 Archiving, 794 ASN, 307 ASN tracking number, 365 Assign warehouse in EWM, 52 Authorization fields, 790 Authorization objects, 790, 791 Authorization profiles, 790, 791 Authorizations, 790, 791 Auto ID infrastructure (AII), 141, 749 Auto-ID Object Event Repository, 750 Auto Logon, 721 Automated storage and retrieval systems (ASRS), 57 Automatic packing, 351 Automatic refresh Easy Graphics Framework, 730 Automatic replenishment, 484, 500 Autorefresh, 566 Auxiliary packaging material, 195, 662 Auxiliary products, 653 Availability, 798, 804 Availability group, 84, 240, 349, 359, 392 For production supply,

31 Index Available for Sale (AFS), 40, 41 Available quantity Batches, 62 B Backflushing, 157, 476, 480 Backflush withdrawal, 157, 683 Barcodes, 719 Base unit, 119, 141 Base unit of measure, 132, 139 Basic measurement services, 567 Batch In goods issue process, 255 In the goods receipt process, 254 Update control, 253 Batch data communication (BDC), 808 Batch Management, 120, 136, 251 Documentary batch management, 256 Enable, 254 BC Set, 804 Activation, 806 Collective, 805 Production supply, 472 Bill of lading, 365, 641 document for freight order management, 464 Bill of material, 203, 474, 667 Billing delivery related, 415 Bin access type, 90, 214 allowed for resource, 725 in queue determination, 723 Bin type determination, 165 Bin type sequence, 384, 505 Bonded stock, 414, 773 Bonded warehouse stock, 765 Book inventory, 540 BP role category, 224 Bulk storage, 57, 62, 383 Bulk storage indicator, 160 Bulk structures, 160 Business Add-In (BAdI) Calculating labor factor, 222 calculating resource execution constraints, 729 Date determination for comparison of shelf life, 157 Determine available time of processor, 710 enable documentary batch in ERP, 258 Enhancing product number, 134 Enhancing the warehouse graphic layout, 575 mapping serial numbers ERP->EWM, 276 Posting goods movement via PPF, 785 prioritization of warehouse orders, 727 resource execution constraints storage group engaged, 729 /SCWM/DLV_BATCH_CHAR, 255 /SCWM/DLV_BATCH_VAL, 255 /SCWM/EX_CORE_CR_STOCK_ID, 285 /SCWM/EX_DLV_DET_LOAD, 352 /SCWM/EX_ERP_SN, 276 /SCWM/EX_RECGRP_ENGAGED_ HANDL, 729 /SCWM/EX_RECGRP_LEAVETIME_ CALC, 729 /SCWM/EX_SR_PRIOP, 352 SMOD_APOCF005, 809 specify your own number for the stock ID, 285 stock removal strategy, 444 transferring additional valuations into the batch, 255 Travel distance calculation, 701 Verification field, 102 Business Application Programming Interfaces (BAPIs) for physical inventory, 544 Business configuration set, 360 Business context, 586,

32 Index Business explorer (BEx), 582 Business hours, 181 Business intelligence Delta extraction, 581 Initial extraction, 581 Business partner, 52, 175 Employee, 775 Identification numbers, 180 Loading, 807 Plants, 183 Processor, 691 Roles, 178 Business partner roles Processors, 224 Business partner types, 176 Business system group, 134 C Calendar assignment for wave, 431 Calendar maintain, 426 Cancelling picking, 452 Capacities, 120, 145 Capacity check, 75, 92, 390 Early, 76 Capacity consumption, 120, 142 Capacity profile for wave, 431 Capacity utilization, 509 Carrier, 176, 183, 193, 367, 462, 636 Carrier profile, 193, 427 Catch weight, 123, 150 Measuring in work center, 114 Catch weight management, 360 Activation, 292 ERP activation, 292 In EWM delivery, 294 Integration into EWM processes, 293 Profile, 292 Tolerance group, 292 Valuation measured, 294 Catch weight product, 153 Catch weight profile, 154 Catch weight profile for catch weight quantity, 124 Catch weight relevant, 124 Catch weight tolerance group, 124, 154 Categories, 563 Category of unit of measure, 120 Changed by, 134 Change documents, 355 Checked by, 134 Checked delivery, 680 Check-in, 344, 367, 642 Check-out, 642 Checkpoint, 362, 632 CIF, 330 Citrix, 747 Closed, 148 Closed packaging, 120, 148 Closing indicator, 605 Code group, 407 Comma delimited file creating for data loads, 809 Communication point, 777 Company code, 37, 39 assign plants, 39 Completion check, 370 Complex loading, 462 Complex unloading, 369, 370 Composite roles, 790 Condition configuration, 785 Condition (for labor management), 694 Condition maintenance group, 397 Condition Records for wave template determination, 434 Condition table, 397 Condition technique, 394, 787 Creation, 398 for wave assignment433 Condition type,

33 Index Confirmation correction, 604 Consistency check, 347 Consolidation group, 436, 458 determination, 417 Consolidation group, 67, 113, 378, 520, 522, 624 Consolidator, 183 Consumption-relevant for VAS, 158 Control cycle records, 475 Control indicator, 359 Control indicator for process type determination, 359 Controlling (ERP), 541 Conveyor system, 453 Conveyors, 574 Core interface (CIF), 117, 119, 126, 179, 182, 183, 334, 766, 801, 808 Automatic transfer, 335 Integration model, 126 Initial transfer, 330 Correction delivery, 601 Correlation fix, 157 Counting, 374, 402 Explicit, 403 Implicit, 403 Counting inbound delivery, 402 Counting procedure, 531 Country of origin, 136, 352 With batch management, 299 Without batch management, 299 Crate part replenishment, 484, 496, 487 Crate parts, 208, 496 Created by, 134 Cross-docking, 33, 607 Exceptions, 602 Cross-docking monitor, 610 Cross-docking route, 192, 423, 611 Crystal reports, 583 Currency Unit, 532 Custodian, 249 Customer, 175, 179 Supply chain units, 184 Transfer via CIF, 127 Customer Relationship Management (CRM), 310, 411 Customer maintenance, 179 Customer returns Inspection, 402 Customs business partner, 183 Customs office, 183 Cutover, 812 Cycle count indicator, 156, 546 Cycle Counting, 546 D Dangerous goods, 150, 187, 766 Dangerous goods indicator profile, 154 Data archiving, 794 Data entry type, 226 DataSources, 555, 577 Data store objects, 576 Date profile, 357 Date types, 357 Decentralized warehouse management, 130, 800 Decision code, 377, 407 Deconsolidation, 343, 374, 375, 378, 380 Deconsolidation work center, 380 Delivery, 757 Integration ERP-EWM, 337 Delivery adjustment in case of differences, 591 Delivery date, 347 Delivery item type Serialization, 276 Delivery priority, 359 Delivery processing, 781, 783 Delivery Split Indicators, 49 Delivery status,